Province introduces legislation to define “privatization”

New legislation has been introduced that will provide a legal definition for the word “privatization”.

The aim is to have privatization defined as, in relation to Crown corporations, the transfer to the private sector of all or of the assets, transfer of operational control, or transfer of a controlling interest of the Crown corporation.

“These changes clarify the meaning of the term when used in future and existing Saskatchewan Acts and regulations,” Justice Minister and Attorney General Gordon Wyant said in a statement.

“This definition explains actions that would be considered privatization and recognizes the necessary flexibility for government to restructure Crown corporations while maintaining ownership.”

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The government said the definition doesn’t include the dissolution of a Crown corporation or any other restructuring.

However, the change in definition also opens up the possibility for Crown corporations to sell up to 49 per cent of their controlling interest while still being publically owned.

Any transaction like this would need approval of the Crown’s board.

Wyant used the example of Saskatchewan-based pension plans being able to invest in Crown assets like SaskTel.

“It would be typical that when you’re issuing equity, depending on how that equity is issued, that other people would become shareholders,” he explained.

“But it’s important to note that in the legislation, in the definition, that the control of the corporation remains with the people of Saskatchewan.”

Justice critic for the NDP Nicole Sarauer said her party will have to take a better look at the legislation when talking to media, but they are concerned about this possibility.

“To me that sounds like a form of privatization that we need to make sure the people of Saskatchewan have given this government a mandate for. So again we’re going to have to give a real good look at this,” Sarauer said.

In a statement, the province said the reasoning for this legislation is because the lack of definition opened up uncertainty in The Crown Corporations Public Ownership Act.

Additionally the province said this legislation does not change their stance on being committed to this act.